Rectification of share register: obtain formal legal sanction before cancelling mistaken allotments to ineligible subscribers. Companies facing mistaken allotments to ineligible subscribers, including minors or bodies without subscribing power in their memorandum, should not unilaterally cancel or amend entries in the register of members; instead, they should obtain appropriate legal sanction before effecting cancellation or rectification to address issues of corporate capacity and avoid disputes arising from retrospective alterations.
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Provisions expressly mentioned in the judgment/order text.
Rectification of share register: obtain formal legal sanction before cancelling mistaken allotments to ineligible subscribers.
Companies facing mistaken allotments to ineligible subscribers, including minors or bodies without subscribing power in their memorandum, should not unilaterally cancel or amend entries in the register of members; instead, they should obtain appropriate legal sanction before effecting cancellation or rectification to address issues of corporate capacity and avoid disputes arising from retrospective alterations.
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